MetLife shares slide on 2006 outlook

Life insurer's profit target falls below analyst forecasts

AlistairBarr

SAN FRANCISCO (MarketWatch) - MetLife Inc. shares declined on Monday after the life insurer issued a 2006 outlook that was below some analysts' expectations.

MetLife sees operating earnings of $3.29 billion to $3.48 billion next year, between 2% and 6% higher than 2005, the company said in a Securities and Exchange Commission filing.

Operating earnings per share will likely be $4.25 to $4.50 in 2006, which would be between 1% below the company's 2005 result and 4% above it, MetLife
MET, +0.35%
added.

MetLife was expected to earn between $4.30 and $4.65 per share next year, according to 22 analysts in a Thomson First Call survey.

MetLife shares were 2.6% lower at $50.83 in morning trading, but had declined more than 3% earlier.

For 2005, MetLife said it will likely make between $4.27 per share and $4.32 per share on an operating basis.

Including one-time items such as the cost of catastrophes and the integration of the insurer's purchase of Travelers Life & Annuity from Citigroup Inc.
C, -0.18%
earlier this year, MetLife said "normalized earnings per share will be $3.91 to $3.96 in 2005.

MetLife was expected to earn $3.90 to $4.40 per share in 2005, according to a Thomson First Call poll of 23 analysts.

Return on equity will probably come in at 12.4% to 13.1% next year on an operating basis, MetLife said. That's below its 2005 projected result of 14.4% to 14.6%.

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